Hungarian Efforts to Circumvent Prohibited Purchase of US Machine Tools

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A000200240001-9
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: November 9, 2016
• Document Release Date: July 21, 1998
• Sequence Number: 1
• Publication Date: November 19, 1948
• Content Type: IM

Appro e P For Release : CIA-RDP78-01 1fA000200240001-9
44A4 X
CENTRAL INTELLIGENCE AGENCY
19 November 1948
INTELLIGENCE B1E)RANDUM NO. 89
SUBJECT: Hungarian Efforts to Circumvent Prohibited Purchase of
US Machine Tools
1. Confirmed reports reveal that official Hungarian purchasing
agencies are making every effort to secure US machine tools for the
manufacture of war material, through Western European third-party
interests.
2. Within the past 12 months the leading Hungarian industrial firms
have been preparing for conversion to a fuller war material produc-
tion program for the account of the USSR. Because of war damage
wear and reparations, the lack of heavy special US machine tools has
been the greatest bottleneck of such plans. As a result the Hungarian
Government has explored means of securing those items which have been
banned from export by the US Government. Reports have been received
of discussions with third-party interests (such as individual Swiss
dealers and manufacturers).
likely hhat effor hods
3. The program is now being implemented. It
will be concluded in the form of a dummy S cooperation,,
in other countries have also been arranged. American manufacturers
have been assured that Hungarian purchases could be routed through
Holland and Belgium to reach Hungary and Poland. Instructions for
shipping have included consignment to the Netherlands Indies via the
Netherlands and to the Belgium Congo via Belgium. Forwarders in the
Netherlands or Belgium arrange the diversion of shipment to Poland and
Hungary. Gleason Gear equipment,, in particular, has been sought through
this means. CIA has acquired detailed lists of the Hungarian machine
tool inventories in the large industrial installations, and from expert
analysis it appears that many American machine tools are necessary to
a full and adequate conversion to war material production.
4. Hungary' Is also making arrangements to set up a purchasing agency
in Cuba.
DoC11,11E t Nao. 00
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